Value Investing (Santos, Greenwald, Eveillard) SP2016
Value Investing (Santos, Greenwald, Eveillard) SP2016
Value Investing (Santos, Greenwald, Eveillard) SP2016
Value Investing: From Graham to Buffett and Beyond. Bruce C. N. Greenwald, Judd Kahn, Paul D.
Sonkin and Michael van Biema, Wiley Finance, 2004.
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel
(Revised Edition) [with comments by Jason Zweig and introduction by Warren Buffet].
There is of course excellent literature on the subject of value investing and related topics. Some
interesting books that immediately come to mind are:
The Little Book that Still Beats the Market. Joel Greenblatt. John Wiley & Sons, 2010.
Margin of Safety: Risk Averse Value Investing Strategies for the Thoughtful Investor. Seth Klarman.
Harper Business, 1991.
The Most Important Thing: Uncommon Sense for the Thoughtful Investor. Howard Marks,
Columbia Business School Publishing, 2011.
The Little Book of Behavioral Investing. James Montier. John Wiley & Sons, 2010.
Value Investing: Tools and Techniques for Intelligent Investment. James Montier. John Wiley &
Sons, 2009.
Value Investing: A Balanced Approach. Martin Whitman. Frontiers in Finance Series, John Wiley &
Sons, 2000.
Core Course
Corporate Finance
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Financial Accounting
Global Economic Environment
Managerial Economics
Cost of Capital
Valuation
Financing Options
Time value of money
Opportunity cost (of capital)
The Capital Asset Pricing Model (CAPM)
Firm Valuation Model
The accounting equation
Revenue and expense recognition
Resources and obligations measurement and disclosure
Risk Management
What is Gross Domestic Product and how is it measured?
What causes inflation?
What causes changes in exchange rates?
What are the causes of business cycles?
What are the effects of monetary policy?
What are the effects of fiscal policy?
What is the role of financial markets in the economy?
Barriers to entry
Moats
Maximization and thinking on the margin
Analyzing complex decision-making under uncertainty
Decision-based cost analysis
Pricing with market power
Market segmentation and other advanced pricing strategies
Understanding market competition and equilibrium thinking (in the
short-run)
9. Market equilibrium thinking (in the long-run) and barriers to entry
10. Strategic interaction among firms and Nash equilibrium
Strategy Formulation
the fundamental assumptions and approaches to value investing, (2) techniques for assessing
fundamental value balance sheet and earnings power approaches, (3) structuring value-based portfolios
to control risk and (4) designing strategies for searching efficiently for value investing opportunities.
METHOD OF EVALUATION:
Term A
1. (35%) Class attendance and participation
2. (30%) Homework assignments students will submit 3 (three) short papers on 3 (three) cases of
their choice. Each paper will consist of a maximum of 1 (one) page of text and 1 (one) page of
exhibits. This assignment is an exercise on valuing the company featured in the case.
3. (35%) Mandatory final project students will self select into groups of 4 (four) students. Each
group will submit 1 (one) final project, a company valuation. The final project will consist of a
maximum of 5 (five) pages of text and 5 (five) pages of exhibits from a list of about 30 companies
provided by the professors. Different groups can select the same company. All final projects will
be submitted as candidates for the Sonkin Prize.
CLASSROOM NORMS AND EXPECTATIONS
Class Participation:
Guest Speakers:
This course will involve high profile guest lecturers; class participation will be crucial to the success of the
course.